Pin Bar Setup

The pin bar is a staple of the way I trade the Forex market. It has a very high accuracy rate in trending markets and especially when occurring at a confluent level. Pin bars occurring at important support and resistance levels are generally very accurate setups. Pin bars can be taken counter trend as well, as long as they are very well defined and protrude significantly from the surrounding price bars, indicating a strong rejection has occurred, and preferably only on the daily chart time frame. See the illustration at the above for an example of a bearish pin bar (1st bar) and a bullish pin bar (2nd bar) —>

As the above following chart example we will take a look at pin bars occurring within the context of a trending market; my favorite way to trade them. Also, note that this uptrend began on the back of two bullish pin bars that brought an end to the existing downtrend.

Articcle taken from:  http://www.learntotradethemarket.com/forex-trading-strategies/price-action-setups-pin-bars-fakeys-inside-bars